Federal Reserve Governor Christopher Waller believes interest rates should be cut at the end of the month due to slowing economic momentum and increased risks to employment mandates. He supports a 25 basis point cut and suggests that further cuts may be necessary to move monetary policy toward a neutral level rate.

Waller warns that not easing this month could lead to issues down the road and falling behind on appropriate policy. He stresses that Fed policy is not on a preset course and decisions on rate-setting will be made meeting-by-meeting, emphasizing that his interest in cutting rates is not political.

Financial markets are predicting a September start for rate cuts, with two easings potentially in the works. Waller notes that the cost of Trump’s import tax surge will be split between consumers, foreign goods producers, and importers. Despite ongoing pressure from the Trump administration, Waller denies any contact regarding becoming Fed chair.

Read more at Yahoo Finance: Fed’s Waller wants July interest rate cut amid rising growth, job market risks